EXAM 2_sample

EXAM 2_sample - Table 1. GDP $ 2,500.00 Net Taxes $ 700.00...

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Table 1. GDP $ 2,500.00 Net Taxes $ 700.00 Government Purchases $ 800.00 Planned Investment $ 400.00 Consumption $ 1,300.00 1. Refer to the Table 1. What is the status of the federal budget? a. Budget surplus of $100 b. Budget deficit of $100 c. Budget surplus of $200 d. Budget deficit of $200 2. Refer to the Table 1. What is the supply of loanable funds during the year? a. $500 b. $400 c. $1,300 d. $1,200 3. Refer to the Table 1. What is the demand for loanable funds during the year? a. $500 b. $400 c. $1,300 d. $1,200 4. Given the following information, what would be the values of M1 and M2? Small time deposits $650 billion Checking deposits $300 billion Savings-type accounts $750 billion Money market mutual funds $600 billion Travelers' checks $ 25 billion Large time deposits $600 billion Cash in hand $100 billion a. M1: $400 billion; M2: $2,450 billion b. M1: $100 billion; M2: $1,075 billion c. M1: $425 billion; M2: $2,425 billion d. M1: $425 billion; M2: $3,025 billion e. M1: $1,175 billion; M2: $1,850 billion 5. Financial intermediaries are important because a. the process of finding loans is complicated b. firms are usually unwilling to part with extra revenue c. they are examples of banks d. we could not function in society without them e. they facilitate efficient transactions between borrowers and lenders 6. If a commercial bank has assets valued at $200 million and a net worth of $20 million, what is the value
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EXAM 2_sample - Table 1. GDP $ 2,500.00 Net Taxes $ 700.00...

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